We do not all have perfect family members with no flaws. Otherwise good people can sometimes have weaknesses that can be a source of concern when you are planning your estate.
Giving someone who has a drug or alcohol problem or a demonstrated inability to handle funds a large direct inheritance could be a recipe for disaster. For a person with a substance abuse problem the inheritance could support an ongoing pattern of self destructive actions.
An individual who cannot manage financial resources well could burn through his or her inheritance very quickly. Ironically, this is exactly the type of person who needs something to fall back on, and you will no longer be around to provide support.
There are ways to make sure that financial assets are available to a troubled heir with “strings attached.” You can create a trust called an incentive trust that includes certain stipulations that must be met before assets from the trust are distributed to the beneficiary.
You could require ongoing drug testing or the completion of a rehabilitation program. You could stipulate that the beneficiary must to charity work, or arrange for a dollar for dollar match out of the trust for monies earned on the job.
There are no particular limits with regard to what you can stipulate as long as you’re not asking the beneficiary to do something that is not legal.
If you are interested in the possibility of creating such a trust, simply take a moment to contact our firm for a free consultation. We can be reached electronically through this link: Hartford Estate Planning Consultation
Mr. Horowitz was awarded his Juris Doctor degree with honors from the University of Connecticut School of Law. While attending law school, Mr. Horowitz received the American Jurisprudence Award in Legal Ethics and the Nathan Burkan Award.
After graduation from law school, Mr. Horowitz continued his legal education at New York University School of Law where he received a Post Doctorate Law Degree in Taxation. He has also recently received a national achievement award.
Mr. Horowitz is admitted to practice before all the state courts in the State of Connecticut and the United States District Court.
Mr. Horowitz was selected for Super Lawyers in 2021.
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